compcase Applying Financial Statement Analysis(财务报表分析-台湾中兴大学)
Comprehensive_Case
Comprehensive Case - Applying Financial Statement AnalysisComprehensive CaseApplying Financial Statement AnalysisREVIEWA comprehensive case analysis of the financial statements and notes of Campbell Soup Company is our focus. The book has prepared us to tackle all facets of financial statement analysis. This comprehensive case analysis provides us the opportunity to illustrate and apply these analysis tools and techniques. This case also gives us the opportunity to show how we draw conclusions and inferences from detailed analysis. We review the basic steps of analysis, the building blocks, and the attributes of an expert analysis report. Throughout the case we emphasize applications and inferences associated with financial statement analysis.CC-1Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement AnalysisOUTLINE Steps in Analyzing Financial Statements Building Blocks of Financial Statement Analysis Reporting on Financial Statement Analysis Specialization in Financial Statement Analysis Comprehensive Case: Campbell Soup Company Preliminary Financial Analysis Short-Term Liquidity Capital Structure and Solvency Return on Invested Capital Analysis of Asset Utilization Analysis of Operating Performance and Profitability Forecasting and valuation Summary Evaluation and InferencesCC-2Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement AnalysisANALYSIS OBJECTIVES Describe the steps in analyzing financial statements. Review the building blocks of financial statement analysis. Explain important attributes of reporting on financial statement analysis. Describe implications to financial statement analysis from evaluating companies in specialized industries or with unique characteristics. Analyze in a comprehensive manner the financial statements and notes of Campbell Soup Company.CC-3Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement AnalysisQUESTIONS1. The six major "building blocks" of financial analysis that we have studied are: i. Short-term liquidity—the ability to meet short-term obligations. ii. Cash analysis and forecasting —future availability and disposition of cash. iii. Capital structure and solvency—ability to generate future revenues and meet longterm obligations. iv. Return on invested capital—ability to provide financial rewards sufficient to attract and retain financing. v. Asset utilization (turnover)—asset intensity in generating revenues to reach a sufficient profitability level. vi. Operating performance and profitability—success at maximizing revenues and minimizing expenses from operating activities over the long run. The initial step in applying the building blocks to financial statement analysis involves: i. Determining the specific objectives of the analysis task. ii. Arriving at a judgment about which of the six major areas of analysis must be evaluated with what degree of emphasis and in what order of priority. 2. Financial statement analysis is oriented toward the achievement of specific objectives. So that an analysis can best serve these objectives, the first step is to define them carefully. The thinking and clarification leading up to the definition of objectives is an important part of the analytical process as it insures a clear understanding of objectives, of what is pertinent and relevant, and thus leads to avoidance of unnecessary work. This is indispensable to an effective as well as an efficient analysis. Effectiveness, given the specific objectives, is enhanced because of a focus on the most important elements of the financial statements in light of the decision task. It is also efficient in that it leads to an analysis with maximum economy of time and effort. 3. An analyst of financial statement data must always bear in mind that financial statements are at best an abstraction of an underlying reality. Further mathematical manipulation of financial data can result in second, third, and even further levels of abstractions. As the book mentioned, no set of photos of the Rocky Mountains can fully convey the grandeur of the terrain. One has to see them to fully appreciate them. This is because photos, like financial statements, are at best, abstractions. That is why analysts must, at some point, leave the financial statements and “visit the companies” to get a full understanding of the phenom ena underlying by the analysis. This is particularly true because of the static nature of the abstractions found in the financial statements. In contrast, business reality is dynamic and constantly changing. 4. The financial analyst must recognize that there are industries with distinct accounting treatments that arise either from their specialized nature or from the special conditions in which they operate (such as governmental regulations). The analysis of the financial statements of such a company requires a thorough understanding of the accounting peculiarities to which they are subject. Accordingly, the analyst must be prepared for this task by studying and understanding the specialized areas of accounting which affect the analysis. Examples of specialized industries include oil and gas, life insurance, and public utilities. As in any field of endeavor, specializedCC-4Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement Analysisareas of inquiry require that specialized knowledge be brought to bear upon them. Financial statement analysis is, of course, no exception.CC-5Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement Analysis5. A good analysis highlights for the reader the interpretations and conclusions of the analysis from the facts and data upon which they are based. This helps to distinguish fact from opinions and estimates. It also enables the reader to follow the rationale of the analyst's conclusions and allows him/her to modify them as judgment dictates. To this end, the analysis should contain distinct sections devoted to: i. A brief "Summary and Conclusion" (executive summary) section as well as a table of contents to help the reader decide how much of the report he/she wants to read and which parts of it to emphasize. ii. General background material on the enterprise analyzed, the industry of which it is a part, and the economic environment in which it operates. iii. Financial and other evidential data used in the analysis as well as ratios, trends, and other analytical measures that have been developed from them. iv. Assumptions as to the general economic environment and other conditions on which estimates and projections are based. v. A listing of positive and negative factors, quantitative and qualitative, by area of analysis. vi. Projections, estimates, interpretations, and conclusions based on the aforementioned data.CC-6Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement AnalysisEXERCISESExercise CC-1 (30 minutes) The factors that would determine the relative PE ratios are: a. Growth in earnings per share Year 5 to 6 ........................................... Year 2 to 6 ........................................... Axel 21% 150% Bike 20% 54%Assuming net income is comparable as far as accounting practices go, Axel would be likely to have a higher PE ratio because of greater historic growth in earnings per share. b. Leverage in capital structure Axel 33% of its total capital is debt Bike No debtAxel's earnings are likely to be greater, relative to Bike, because of this leverage (assuming successful trading on the equity). Accordingly, its growth in per share earnings is likely to be faster, producing greater market appreciation. This is likely to produce a higher PE for Axel. However, Axel does have greater financial risk, which would tend to reduce its PE differential.c. Return on common equity Year 6 .................................................. Axel $2,125 $20,000 = 10.6% Bike $2,250 $30,000 = 7.5%Axel's greater ROCE is mainly due to the leverage in its capital structure. This will tend to produce a higher PE for the stock (assuming successful trading on the equity). This will result in larger growth in retained earnings as long as dividend policies are about the same, and should yield faster growth of the stockholders' investment. It should also reduce the need to finance expansion with further stock issuances and the potential dilution of earnings per share.CC-7Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement AnalysisExercise CC-1—continued d. Net income as % of sales Axel $2,125 $30,000 = 7.1% Bike $2,250 $30,000 = 7.5%The difference is due to Axel's use of debt in its capital structure. If we calculate net income before tax and interest (assuming a 50% tax rate), Axel is seen to be more profitable as shown here: Axel $4,750,000 500,000 4,250,000 15.8% Bike $4,500,000 -4,500,000 15.0%NI before tax and interest ..................... Interest expense ................................... NI before tax .......................................... NI before tax & interest as % of sales .Axel's interest payment can be considered by the analyst as a cost of servicing the capital structure. Therefore, a better measure of operating profitability is the ratio of net income before tax and interest to sales. This shows Axel to be marginally more profitable in Year 6, which will tend to produce a faster growth in earnings per share and PE. e. Ratios 1. Current ratio ............................................... No significant difference. 2. Receivables turnover ................................ 6.00 8.00 Axel 2.85 Bike 2.97Implies Bike has a more efficient and strict collection policy. 3. Ratio of sales to net plant and equip. ...... 2.30 1.88Suggests Axel is more efficient in utilizing its plant. f. Patent position Axel seems to have a stronger patent position, but to accurately determine this one would need to know the policy in accounting for patents. These include answers for questions such as: Will amortization of Axel's patents’ cost be a drain on future earnings? Do the patents’ book values represent market values?CC-8Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement AnalysisExercise CC-1—concluded g. Return on long-term fixed assets Axel: Bike: $2,125,000 / $13,000,000 = 16.35% $2,250,000 / $15,900,000 = 14.15%The results from the return on long-term assets increase Axel's return to an even more favorable comparison with Bike—implying higher PE for Axel.Other considerations that one would want to examine for PE include a. Reputation of the company. b. Quality of management. c. Product range and its potential. d. Accounting policies—inventory, depreciation, amortization of intangibles, etc. e. Dividend payout and policies (these policies could markedly affect the relative PE for these companies if there were significant differences). f. Capital expenditure programs—Will Axel need new plant soon? g. Expansion program—internal and via acquisition.Overall Analysis: On most factors, Axel appears to be more efficient and profitable than Bike. The greater prospects for increases in Axel's earnings per share and market value are likely to produce a higher PE ratio for Axel.Exercise CC-2 (25 minutes)Companya. b. c. d. e. f. g. h. i. (6) (2) (8) (1) (9) (3) (5) (7) (4)CC-9Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Comprehensive Case - Applying Financial Statement AnalysisExercise CC-2—concludedIdentification Strategy Industry Pharmaceuticals Health care Expected Characteristics Company # High R & D 2 No inventory 8 High plant and equipment No advertising expense High cost of goods sold Utilities High plant and equipment 1 Large debt (financed with bonds) Low inventories Investment advising No inventory 9 Low plant and equipment High "other" assets (investments) High interest expense Low cost of goods sold Grocery stores Low NI as % of sales 5 Low receivables Low plant and equipment (operating leases) Computing equipment High R&D 7 Higher inventory than pharmaceutical company Public opinion surveys No inventory 4 No R&D To distinguish between the tobacco manufacturer (6) and the brewery (3), recognize that the tobacco manufacturer would keep higher inventories, while a brewery would maintain a higher investment in plant and equipment. This implies that company (6) is the tobacco manufacturer, and company (3) is the brewery company. Alternative Solution—Explanations for identification: Three firms have zero inventory—(4), (8) and (9). These likely correspond to firms that have operating expenses instead of cost of goods sold —specifically, investment advising, health care, and public survey companies. Since company (8) has a very high property, plant and equipment account, it is most likely the health care company. Company (9) has large "Other assets," which probably represents investments, and high current liabilities —it is most likely the investment advising company. By process of elimination, company (4) is the public opinion survey company. Company (1) has a large plant and equipment account, as well as high long-term debt and interest expense. It is the utility company. Companies (2) and (7) have high R&D expense. This would correspond to the pharmaceutical company and the computing equipment company. Since drugs typically have a shorter shelf-life than computer equipment, the pharmaceutical company will have lower inventory relative to sales. Company (2) is, therefore, the pharmaceutical company, while company (7) manufactures computer equipment. Company (5) must be the grocery store company since it shows very low receivables (few sales on account), and very low net income relative to sales (typical for the industry). Of the two firms left (tobacco manufacturer and brewery), tobacco products require aging. The tobacco manufacturer would keep higher inventories, while a brewery would represent a higher investment in plant and equipment. Company (6) is the tobacco manufacturer, and company (3) is the brewery company.CC-10Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.i.ii. iii.iv. v.Problem CC-1 (55 minutes)a. 1. Brewing industry compared with the S&P 400The brewing industry and the S&P 400 are similar in terms of short-term liquidity as indicated by the current ratio and quick ratio—the ratios are similar in both absolute value and trend (both ratios are about the same as in Year 2).However, there are substantial differences in long-term financial risk. While the industry has experienced a decline in the proportion of debt, the aggregate market data indicates a higher level of debt. This divergence in trend is also evident in the flow ratios. While the brewing industry increased interest coverage and relative cash flow ratios, the aggregate market experienced a decline in coverage and relative cash flow. In turning to total asset turnover ratios, the results are similar although the industry is better. Both experienced an increase in net profit margin, but the industry looked better in the most recent year. Moreover, the industry increased its return on total assets over time, while the return for the market declined. In the most recent year, the industry's return was almost twice as large as the S&P (7.90 percent vs. 3.97 percent). To summarize, the brewing industry showed progress in reducing its financial risk and increasing its profits and return on assets. It had a better trend and final position than the market.2. Anheuser-Busch compared with the brewing industryRegarding short-term liquidity, BUD is about the same in Year 6 as in Year 2—moreover, its ratios are consistently below the industry. While there is no deterioration, the firm is less liquid than is normal for the industry. It is important to determine why BUD is able to maintain such a tight short-term posture compared to the rest of the industry. BUD's long-term debt posture has improved slightly over time as evidenced by the debt to asset ratios. The industry also has improved, so on a relative basis they are about the same as in Year 2. BUD's interest coverage ratio has declined in absolute terms and relative to the industry. In Years 2, 3, and 4, BUD had coverage of about 12-13 versus 7-8 for the industry; in Year 6 it is about 10 times for BUD versus 11 for the industry. BUD’s cash flow ratios have improved along with the industry.Total asset turnover has increased for both BUD and the industry. The profit margin performance for the industry is somewhat better—it went from 5.36 percent to 6.16 percent, while BUD is stable (6.30% versus 6.17%). Notably, this stability in the profit margin is impressive considering the sales growth and industry market share gained by BUD during this time period. Finally, the return on total assets for BUD has increased over time and has been consistently above the returns for the industry. In summary, BUD is less liquid than the industry, but is stable on a relative basis. Its financial risk is mixed—its debt ratios declined, its interest coverage declined on an absolute and relative basis although it is still a very healthy 10 times, and its cash flow ratios improved. BUD's profit margin is constant but declined on a relative basis, and its return on total assets improved but was constant on a relative basis.Problem CC-1—concluded3. Anheuser-Busch compared with the S&P 400BUD has maintained its short-term liquidity position, but its liquidity ratios are consistently below the market. Its long-term financial leverage declined over time while its market leverage increased—by Year 6, BUD was better on this factor. This position is also reflected in interest coverage, which declined somewhat but is still more than twice the market number. Also, the cash flow ratios for BUD are the same or lower than the market in Year 2, but are substantially better absolutely and relative to the market in Year 6. BUD's total asset turnover increased while the market declined slightly over this period.The net profit margin performance is similar—the market and BUD experienced small declines over the period. BUD did have a larger return on assets in Year2 and increased its spread by Year 6 when it was twice as large (8.89 percent vs.3.97 percent). In summary, with the exception of the short-term liquidity ratios,BUD is superior in an absolute sense and generally experienced a better trend.As a result, the firm has much lower financial risk and a much higher return on assets.b. There should be no problem with extending credit to BUD given its declining debtratios, its strong interest coverage ratios, and its strong cash flow ratio that is already better than the market and trending upward compared to a decline for the market. With the lone exception of the interest coverage ratio, which declined in Year 6, all the financial risk measures have improved on an absolute basis and relative to the market. Even in the case of the coverage ratio, it is still quite large and about 2.5 times the coverage for the aggregate market. Therefore, one would not expect a change in the credit rating of BUD based on these financial ratios.Problem CC-2 (65 minutes)a. [Note: Forecast data taken from Exhibit I of Case 10-5.]ABEX ChemicalsForecasted Operating IncomeFor Year Ended Year 10Petrochemicals Pipeline Total Segment revenues (volume x price)4,950 x $0.470 ........................................ $2,326.506,290 x $0.187 ........................................ $1,176.23 Segment operating costs (volume x cost)4,950 x $0.37 .......................................... 1,831.50$1,176.23 x (1-27%) ................................ 858.65 Segment operating income ........................ $ 495.00 $ 317.58Total operating income ($495 + $317.58) ..$ 812.58b. Additional information necessary to prepare a forecast of net income includes:1. Schedule of debt outstanding including interest cost estimates.2. Estimate for administration cost (such as the trend).3. Estimate for rental expenses.4. Estimate for investment income.5. Tax rates.6. Schedule of preferred shares outstanding including dividend rates.7. Average number of shares outstanding.This information can be obtained from the following primary sources: (1) quarterly reports, (2) annual reports, (3) company information packages, (4) prospectuses, (5) management interviews, (6) 10-K filings, and (7) 10-Q filings.Problem CC-2—concludedc. 1. Incremental EPS = Incremental operating income x (1-tax rate)Shares outstandingVolume x Price increase per pound x (1-tax rate)Shares outstanding= [4,950 lbs. x ($0.47)(8%) x (1- 0.44)] / 305= $0.34 per share increase2. Incremental EPS = Volume increase x (Price - Cost) x (1-tax rate)Shares outstanding= [(4,950 lbs.)(8%) x ($0.47-$0.37) x (1- 0.44) / 305= $0.07 per share increaseIn this case, an 8% increase in price has a much greater impact than an 8% increase in volume. This is because higher volume creates an increase in variable costs. If costs rise as much as prices, then the impact on EPS is reduced. Note that higher prices often coincide with higher volume if both occur due to an increase in demand that is greater than an increase in capacity.This is why it is particularly important for analysts to pay attention to industry conditions of supply, demand, capacity, inventories, prices, and costs.Problem CC-3 (75 minutes)a. The principal limitation of the four ratios computed is that they say little about thecompany's ability to generate cash. It is a lack of cash that ultimately forces a company into bankruptcy. First, let’s look at the quick ratio. Notice that FGC is able to maintain its quick ratio over the period. This occurs while its working capital declines from $448.7 million in Year 4 to negative $8.3 million in Year 5 to $5.4 million by the middle of Year 6. Similarly, neither the receivables turnover nor the inventory turnover help in revealing this decline in liquidity. Adding to the decline in liquidity is the company’s increasing reliance on external financing. This is evidenced by the marked increase in long-term debt. Again, the four ratios computed ignore this implication to liquidity—that is, interest costs must be paid.Finally, its operating margin trend over the 2 1/2 years is equally deceptive in not revealing the decline in liquidity. This is primarily because this margin is computed before interest and taxes. Consequently, it fails to reflect the dramatic increase in interest expenses over this period. The operating profit margin after interest expense would reflect this decline in liquidity. In summary, these four ratios do not reflect the decline in FGC’s liquidity.b. Several better measures of liquidity and operating performance exist (or at leastcan supplement the four ratios computed). There are two such measures reported in FGC’s "Selected Cash Flow Data" schedule: (i) Cash flow from operations and (ii) Net liquid balance.The operating cash flow data clearly show a decline in FGC's liquidity over the recent 2 1/2 years. Moreover, the components of this measure also evidence a decline in liquidity. Specifically, notice that earnings from continuing operations falls from $173.2 million for Year 4 to only $10.4 million for the first 6 months of Year 6. Furthermore, noncash working capital—which declines in Years 4 and 5 (thereby acting as a source of cash)—increases in the first half of Year 6, reflectinga further $84.1 million drain on cash (admittedly, seasonal factors could explainsome of this decline).The net liquid balance reflects that part of working capital that is most liquid—it excludes items of working capital that are less liquid. In the case of FGC, the net liquid balance was already negative in Year 4, even before the recapitalization of FGC. This suggests that FGC was overdependent on short-term external sources of financing. This measure remained negative throughout this period. Indeed, the net liquid balance appears to be a good leading indicator of default risk—at least in the case of FGC.Other potentially useful measures are times interest earned, return on assets, and return on common equity. Times interest earned reflects the ability of operating income to cover the expense of long-term debt. The computation of this ratio reveals a dramatic decline from a comfortable 5.4 in Year 4 to only 1.1 in the first half of Year 6. A value less than 1.0 is a red flag for solvency risk. Return on assets and return onProblem CC-3—concludedequity also reflect FGC's long term financial prospects. Without sufficient returns, the company's debt holders cannot expect security for their claims on income or assets. Return on assets slipped from 10.9% in Year 4 to 6.4% in the first half of Year 6. Both metrics reveal the decline in FGC’s liquidity.c. Based on the information provided, you should seek to sell the bonds. Indeed, youshould probably accept bid prices as low as the lower 50s. The bonds are subordinated debentures, meaning they do not have first claim on assets in case of bankruptcy. Also, the default risk for these bonds appears to be unacceptably high. Industry conditions appear to have deteriorated due to a combination of lower demand and increased supply. Reduced capacity utilization has put downward pressure on prices. The fact that FGC's major competitor is also highly leveraged may reduce the risk of unbridled price competition. On the other hand, it could lead to aggressive pricing policies in the event both companies become desperate to spur sales to service their large debt loads. The industry is cyclical, so being highly leveraged places an even greater risk on FGC. It also calls into question the past decisions of management. Given the poor ability of FGC to generate cash and its weak net liquid balance—along with its heavy reliance on external, short-term financing—you are well advised to recommend the sale of its bonds.Case CC-1 (90 minutes)The answers to the case depend on the company selected for analysis. The comprehensive case analysis of Campbell Soup Company should serve as excellent guidance for a student in completing the requirements of this case. Case CC-2 (120 minutes)a. $7,000 = Net income - Cash dividends = $10,000 - $3,000(Note: The 10% stock dividend has no effect on total stockholders' equity.)b. Two accounts are increased by the following amounts:Property, plant & equipment ................................ $1,000Long-term debt ...................................................... $1,000These accounts are increased to record these leases at the present value of their future rental payments.These leases are reflected in the statement of cash flows as a separate disclosure as a significant noncash activity.ZETA's statement of cash flows (SCF) reports "Reduction in long-term debt" at $1,500. The only way an external analyst could arrive at this amount is to assume that the capital lease is included in the $7,500 issuance of long-term debt. Unresolved is the question of why the capitalized lease, a noncash transaction, is seemingly included in this amount.。
financial report 和financial statement analysis -回复
financial report 和financial statementanalysis -回复Financial Report:A financial report is a document that provides a comprehensive overview of a company's financial performance. It includes information on the company's income, expenses, assets, liabilities, and equity. Financial reports are typically prepared and presented to shareholders, investors, and other stakeholders to help them better understand the company's financial health and make informed decisions.Financial reports are prepared using generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS). These principles ensure that the financial information is consistent, comparable, and reliable. The main components of a financial report include the income statement, balance sheet, statement of cash flows, and statement of shareholders' equity.The income statement, also known as the profit and loss statement, shows the company's revenues, expenses, and net profit or loss over a specific period. It provides an overview of the company'sprofitability and how efficiently it is managing its operations. The balance sheet presents the company's assets, liabilities, and shareholders' equity at a specific point in time. It reflects the financial position of the company and helps investors assess its ability to meet its financial obligations.The statement of cash flows provides information on the cash inflows and outflows from the company's operating, financing, and investing activities. It helps stakeholders understand the company's liquidity and cash flow management. Finally, the statement of shareholders' equity shows the changes in the company's shareholders' equity over a given period. It includes information on dividends, share issuances, and net income.Financial Statement Analysis:Financial statement analysis is the process of examining a company's financial statements to assess its financial health and performance. It involves analyzing the information provided in the financial reports and using various techniques and ratios to gain insights into the company's profitability, liquidity, solvency, and efficiency.One commonly used ratio in financial statement analysis is the profitability ratio, which measures a company's ability to generate profits. Examples of profitability ratios include the gross profit margin, operating profit margin, and net profit margin. These ratios assess the company's ability to control costs, manage pricing, and generate sufficient profits.Liquidity ratios, on the other hand, assess a company's ability to meet its short-term financial obligations. Examples of liquidity ratios include the current ratio and the quick ratio. These ratios indicate whether a company has enough current assets to cover its current liabilities. A high liquidity ratio suggests that a company is financially stable and can easily meet its short-term obligations.Solvency ratios evaluate a company's long-term financial stability by comparing its debt to its equity. Examples of solvency ratios include the debt-to-equity ratio and the interest coverage ratio. These ratios show whether a company has a sustainable capital structure and can meet its debt obligations in the long run.Efficiency ratios measure how effectively a company is utilizing itsresources. Examples of efficiency ratios include the inventory turnover ratio, the accounts receivable turnover ratio, and the asset turnover ratio. These ratios provide insights into a company's inventory management, collection of accounts receivable, and overall asset utilization.In addition to ratios, financial statement analysis may also involve trend analysis, common-size analysis, and benchmarking. Trend analysis involves comparing financial data over multiple periods to identify patterns and potential areas of concern. Common-size analysis involves expressing financial data as a percentage of a base figure to facilitate comparisons. Benchmarking involves comparing a company's financial performance to that of its competitors or industry standards to identify areas for improvement.In conclusion, financial reports provide a comprehensive overview of a company's financial performance, while financial statement analysis involves analyzing the information presented in these reports to assess a company's financial health and performance. By understanding these concepts and utilizing various techniques and ratios, stakeholders can make informed decisions and gain valuableinsights into a company's financial standing.。
FinancialSupportStatement担保书[5篇材料]
![FinancialSupportStatement担保书[5篇材料]](https://img.taocdn.com/s3/m/fd632ce1ab00b52acfc789eb172ded630b1c9882.png)
FinancialSupportStatement担保书[5篇材料]第一篇：Financial Support Statement担保书Financial Support StatementI hereby guarantee to be responsible to Ms.____’s finance during the period of her studying in France.Should there be any financial problem concerning her, I will be in duty bound to take my responsibility for it.I confirm that I will transfer all the required expenses to my child’s French bank account after she arrives in :Relationship with the Applicant: father/motherIdentification Number:Telephone Number:Signature:Date:第二篇：担保书担保书范文担保书范文（一）XX分行：根据（借款人）的申请，贵行同意向其提供外汇贷款（大写）_________美元（或其他外币），配套人民币贷款（大写________）元。
本保证人同意为该项贷款担保。
特此开立本保证书，向贵行担保下列各项：一、本保证书为无条件、不可撤销的保证书，担保贷款本金为元________整（大写________），和该贷款项下所发生的利息和费用。
二、本保证书保证归还借款人在____字第____号贷款合同项下不按期偿还的全部或部分到期贷款本息，并同意在接到贵行书面通知后十四天内代为偿还借款人所欠借款本息。
如我单位不能履行上述担保责任时，接受你行委托我单位开户行从我单位账户中扣收全部贷款本息，如账户中存款不足，我单位将继续负责偿还借款人应偿付贷款本息及费用。
Introduction to Financial Statement 1
AN INTRODUCTION TO THE FINAL ACCOUNTS OF BUSINESS ENTERPRISES
1
WHY PRODUCE FINANCIAL STATEMENTS
• Financial Statements are regulated by a body called the Accounting Standards Board (ASB).
You will notice that the two formats are fairly similar, apart from the terminology which is used.
7
THE FINANCIAL STATEMENTS OF A SOLE TRADER BASED ON IAS 1-INSPIRED FORMAT
• This documents discussed at great length the ideas behind financial reporting, particularly the objectives of financial statements and the problems of measuring and presenting the results of business activity. • It also identified a number of users of financial statements.
These IFRSs are standards that aim to make financial statements and reporting procedures more uniform across different countries.
ACCA 1.1 S7 (0421) consol notes
ACCA PAPER 1.1Preparing Financial StatementBasic consolidationDefinitionsAn undertaking is the parent of a subsidiary if any of the following apply.(a) It holds a majority of the voting rights in the undertaking. T(b) It is a member of the undertaking and has the right to appoint or remove directors holding a majority of the voting rights atmeetings of the board on all, or substantially all, matters.(c) It has the right to exercise a dominant influence over the undertaking:(i) by virtue of provisi ons contained in the undertaking’s memorandum or articles; or(ii) by virtue of a control contract. The control contract must be in writing and be of a kind authorised by the memorandum or articles of the controlled undertaking. It must also be permitted by the law under which that undertaking is established.(d) It is a member of the undertaking and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in the undertaking.(e) It has a participating interest in the undertaking and:(i) it actually exercises a dominant influence over the undertaking; or(ii) it and the undertaking are managed on a unified basis.(f) A parent undertaking is also treated as the parent undertaking of the subsidiary undertakings of its subsidiary undertakings.All subsidiaries are required to be consolidated unless they qualify for exclusions.Definitions: Parent companySubsidiary companyConsolidated accountsDirect Holding:Indirect Holdings:⏹Vertical group:A80%B60%C⏹ D group⏹Diamond groupAcquisition method and merger methodDifference between acquisition and merger:Features of acquisition accounting in the consolidated accounts⏹Only the post-acquisition profits of a newly acquired subsidiary are included in consolidated reserves.⏹The net assets of a newly acquired subsidiary should be brought into the CBS at fair value to the acquiring group at the date ofacquisition⏹The difference between the fair value of the consideration given and the fair value of net assets acquired represents goodwill. Consolidated goodwillFair value of consideration paid(cost)Less: Fair value of net assets (=OSC+ pre-acquisition reserves)Consolidated reservesParent company:+ Share of retained post-acquisition reserves of SubMinority Interest in CBS=% * net assets of Subsidiary at B/S date.Calculation of goodwillExample 1A Ltd acquired 80% of the ordinary shares ofB Ltd for £100,000 on 31st December 2000. At that date the net assets of B Ltd per their accounts were £80,000. The net assets included land and buildings with a book value of £75,000, which could be sold on the open market for £110,000 and stock with a book value of £15,000 but which only has a net realisable value of £10,000. (The above fair values of £110,000 and £10,000 have been used for illustration only). The calculation of goodwill is shown below.(The net assets must be included at their fair value.)Example 2A Ltd acquired 80% of the ordinary shares ofB Ltd for £100,000 and 10,000 £1.00 preference shares for £15,000 on 31st December 2000. At that date the net assets of B Ltd were £80,000. The financing section of B Ltd is shown below.£Preference shares 20,000Ordinary shares 50,000Retained profits 10,00080,000The calculation of goodwill is shown as follows:The key point when preference shares are involved is that the net assets of the subsidiary company are effectively split into two parts. The share of net assets represented by ordinary shareholder interests (as in the previous examples) and the share of net assets represented by preference shareholder interests.The net assets represented by preference shares are always equal to the nominal value of the preference shares. The share of net assets represented by ordinary shares is then the remainder of the net assets i.e. net assets less the nominal value of preference shares.Example 3A Ltd acquired 80% of the ordinary shares ofB Ltd on 31st December 2000 by issuing 40,000 of it’s own £1.00 ordinary shares to the share holders of B ltd. At that date the net assets of B ltd were £80,000. The market value of each share in A ltd is £2.50. The calculation of goodwill is shown as follows:The key point when calculating the value of shares issued as consideration is that each share is valued at its fair value.Positive goodwillNegative goodwillRetained profit reservesPre-acqPost-acqThe group consolidated reserves are the par ent company’s own reserves and the parent company’s share of the post acquisition reserves of the subsidiary. The following example illustrates this.Example 1Alpha Ltd acquired 80% of the ordinary shares of Beta Ltd on 31 December 2000. At that date Alph a’s own reserves were £20,000 and Beta’s reserves were £12,000. At the 31 December 2001 Alpha’s own reserves were £30,000 and Beta’s reserves were £17,000 (ignore goodwill).The calculation of group reserves as at December 31 2001 is as follows:££Example 2Aria Ltd acquired 75% of the ordinary shares of Hymn Ltd on 31 December 1999. At that date Aria’s own reserves were £20,000 and Hymn’s reserves were £12,000. At the 31 December 2001 Aria’s own reserves were £40,000 and Hymn’s reserves were £22,000. Goodwill of £10,000 arose upon the acquisition of Hymn Ltd. This is to be amortised over ten years.The calculation of group reserves as at December 31 2001 is as follows:1. post-acq2. adjustments3. accumulated amortised g/wCalculation of Minority InterestThe minority interest is calculated as the minority share of the subsidiary company's net assets at the balance sheet date. The net assets of a business can be calculated as the entire share capital plus reserves.Example 1Ball Ltd acquired 80% of the ordinary shares of Bat Ltd on 31 Dec 2000. Bat Ltd has a share capital of 100,000 $1.00 ordinary shares. On 31 Dec 2001 Bat's reserves were $17,000.The calculation of the Minority interest at 31 Dec 2001 is as follows:Example 2Cow Ltd acquired 75% of Chicken Ltd on 31 Dec 2000. The balance sheet extracts of Chicken Ltd as at 31 Dec 2000 and 2004 are as follows:2000 2004$1.00 ordinary shares $100 $100Retained profits $200 ($300)Answer:Example 3Cardiff Ltd acquired 80% of the ordinary shares and 10% of the preference shares of Derby Ltd a number of years ago. The net assets of Derby Ltd as at 31 Dec 2001 are represented below:$000'sOrdinary shares 1,000Preference shares 400Retained profits 4,000Net assets 5,400Answer:When calculate MI involving preference shares, we have to effectively split the net assets into two parts. Firstly that part of net assets represented by preference shareholder interests which is always equal to the nominal value of the preference shares in issue and secondly the remaining net assets attributable to ordinary shareholders. MI in non-group owned preference shares isthe nominal value of any preference shares not owned by the parent company. It is possible that the minority preference share holding could be more than 50%Multiple Choice QuestionsQuestion 1Parent plc acquired 70% of the ordinary shares of Baby plc for £100,000 on 31st December 2001. At that date the net assets of Baby plc were £110,000.What is the goodwill arising upon the acquisition of Baby plc?a. £10,000b. £23,000c. £40,000d. £10,000 capital reserveQuestion 2Bee plc acquired 90% of the ordinary shares of Wasp plc for £100,000 on 31st December 2001. The book values and fair values of thea. £1,000b. £19,000c. £100,000d. £1000 capital reserveQuestion 3Rugby plc acquired 60% of the ordinary shares and 50% of the preference shares of Soccer plc for £100,000 on 31st December 2001. Ana. £10,000b. £14,000c. £34,000d. £40,000Question 4Aardvark plc acquired 75% of the ordinary shares of Bobbin plc on 31st December 2001. The consideration consisted of 10,000 of its own £1.00 ordinary shares and £80,000 in cash. At the acquisition date the net assets of B Ltd were £100,000. The market value of each share in Aardvark plc is £4.00.What is the goodwill arising upon consolidation?a. £5,000b. £10,000c. £20,000d. £45,000a. Share capital £920,000, Share premium £50,000b. Share capital £1,000,000, Share premium £80,000c. Share capital £1,080,000, Share premium £130,000d. Share capital £1,080,000, Share premium £210,000Intra-group stock transferP to S (downstream)P sells to S at $5,000 with cost $3,000 (all remains unsold at the end of year)S to P (upstream)P owns 80% of S. During the year, S sells to P at $40,000 (cost+ 25%mark up) and all remains unsold at y/e.Intra-group fixed asset transfersP sells to S (downstream)Example: P sells to S FA at $7,000 with the cost of 5,000. Depreciation 20%JE:S sells to PP owns S 80%. S sells to P FA at $7,000 with the cost of $5,000. Depreciation 20%JE:。
综合财务报表附注 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
3.
Significant Accounting Policies (continued)
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (its subsidiaries). Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by other members of the Group. All intra-group transactions, balances, income and expenses have been eliminated on consolidation.
Financial Statement Analysis
Lincoln Company Comparative Balance Sheet December 31, 2006 and 2005
Balance Sheet
Increase (Decrease) Amount Percent $ 17,000 3.2% (82,500) (46.5%) (25,500) (5.4%) — $ (91,000) (7.4%)
3.2%
(13.6%) (50.0%) (30.0%)
30.5% 5.3% (7.4%)
Lincoln Company Comparative Balance Sheet December 31, 2006 and 2005
2006 2005 Assets Current assets $ 550,000 $ 533,000 Long-term investments 95,000 177,500 Fixed assets (net) 444,500 470,otal assets $1,139,500 $1,230,500 Horizontal Analysis: Liabilities Current liabilities $ 210,000 $ 243,000 $ (33,000) (13.6%) Difference $(82,500) Long-term liabilities 100,000 200,000 (100,000) (50.0%) = (46.5%) Base year (2005) $177,500 Total liabilities $ 310,000 $ 443,000 $(133,000) (30.0%) Stockholders’ Equity Preferred stock, $100 par $ 150,000 $ 150,000 — Common stock, $10 par 500,000 500,000 — Retained earnings 179,500 137,500 $42,000 30.5% Total stockholders’ equity $ 829,500 $ 787,500 $42,000 5.3% Total liab. & SE $1,139,500 $1230,500 $(91,000) (7.4%)
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Foreword
Deloitte IFRS publications
You can find links to many Deloitte IFRS-related publications at /dttpubs/pubs.htm. Here are a few: (our IFRS website) Daily news updates on IASB developments as well as summaries of standards and interpretations and reference materials for download. A quarterly newsletter on recent developments in International Financial Reporting Standards and accounting updates for individual countries. Plus special editions. To subscribe, visit our IAS Plus website. e-Learning IFRS training materials, modules for each IAS and IFRS and the Framework, with self-tests, available without charge at Based on IFRSs effective for 2005. Also a presentation and disclosure checklist. Guidance on drafting IFRS financial statements both for first-time adopters and those already applying IFRSs.
财务报告 英文
财务报告英文A Comprehensive Understanding of Financial ReportsIntroduction:Financial reports are essential documents that provide detailed information about the financial status and performance of an organization. These reports play a crucial role in decision-making processes, as they assist stakeholders, including investors, creditors, and management, in assessing the company's health and predicting future outcomes. In this article, we will delve into the significance of financial reports, explore their components, and understand how they can be analyzed to gain valuable insights.1. Purpose of Financial Reports:Financial reports serve multiple purposes, all of which revolve around ensuring transparency and accountability. Firstly, these reports allow external parties, such as potential investors or lenders, to evaluate an organization's financial performance and determine if it is a viable investment or lending opportunity. Moreover, they enable existing shareholders to assess the financial health of their investment. Internally, financial reports provide management with an overview of the company's performance and assist in making strategic decisions.2. Components of Financial Reports:Financial reports typically consist of three key components: the balance sheet, income statement, and cash flow statement.2.1 Balance Sheet:The balance sheet provides a snapshot of an organization's assets, liabilities, and shareholders' equity at a specific point in time. It showcases the company's financial position by comparing assets (what it owns) to liabilities (what it owes). Shareholders' equity represents the residual value of the assets after deducting liabilities.2.2 Income Statement:The income statement, also known as the profit and loss statement, presents the revenues, expenses, and resulting net income or loss over a specific time period. It demonstrates the company's ability to generate revenue, control costs, and ultimately, yield profit or incur losses.2.3 Cash Flow Statement:The cash flow statement illustrates the inflow and outflow of cash in an organization during a specified period. It categorizes cash flows into three components: operating activities, investing activities, andfinancing activities. By analyzing this statement, stakeholders can evaluate how effectively a company is managing its cash flows.3. Analyzing Financial Reports:Analyzing financial reports is essential for stakeholders to gain insights into a company's current financial condition and future prospects. Some commonly used tools for financial analysis include ratio analysis, trend analysis, and comparative analysis.3.1 Ratio Analysis:Ratio analysis involves calculating and interpreting various financial ratios to assess an organization's liquidity, profitability, solvency, and efficiency. Ratios, such as current ratio, return on investment, and debt-to-equity ratio, allow stakeholders to compare the company's performance against industry benchmarks and make informed decisions.3.2 Trend Analysis:Trend analysis involves comparing financial data from multiple periods to identify patterns and significant changes. By examining trends in revenue, expenses, and other financial metrics, stakeholderscan gain insights into a company's growth trajectory and identify any potential issues or opportunities.3.3 Comparative Analysis:Comparative analysis involves benchmarking a company's financial performance against its competitors or industry peers. This analysis helps stakeholders gauge the company's competitive position and determine its relative strengths and weaknesses.Conclusion:Financial reports are invaluable tools for stakeholders to assess an organization's financial performance, make informed decisions, and monitor its ongoing viability. By understanding the purpose and components of financial reports and employing various analysis techniques, stakeholders can gain a deeper understanding of a company's financial health and make sound investment or lending decisions.。
consolidated statement of financial position
What is a group?If one company owns more than 50% of the ordinary shares of another company:•this will usually give the first company ‘control’ of the second company•the first company (the parent company, P) has enough voting power to appoint all the directors of the second company (the subsidiary company, S)•P is, in effect, able to manage S as if it were merely a department of P, rather than a separate entity•in strict legal terms P and S remain distinct, but in economic substance they can be regarde d as a single unit (a ‘group’).Group accounts The key principle underlying group accounts is the need to reflect the economic substance of the relationship.•P is an individual legal entity.•S is an individual legal entity./P controls S and therefore they form a single economic entity – the Group./The objective of the consolidated financial statements is to show the position of the group as if it were a single economic entity, therefore:•all of the assets and liabilities of P and S are included in the consolidated statement of financial position•all of the income and expenses of P and S are included in the consolidated income statement•all of the other comprehensive income of P and S is included in the consolidated statement showing other comprehensive income.Definitions IAS 27•subsidiary –an entity that is controlled by another entity (known as the parent)•control – the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities./Control is usually based on ownership of more than 50% of voting power, but other forms of control are possible.Basic principle The basic principle of a CSFP is that it shows all assets and liabilities of the parent and subsidiary.Intra-group items are excluded, e.g. receivables and payables shown in the consolidated statement of financial position only include amounts owed from/to third parties.Method(1)The investment in the subsidiary (S) shown in the parent’s (P’s) statement of financial position is replaced by the net assets of S.(2)The cost of the investment in S is effectively cancelled with the ordinary share capital and reserves of the subsidiary/This leaves a consolidated statement of financial position showing:•the net assets of the whole group (P + S)•the share capital of the group which always equals the share capital of P only and•the retained profits, comprising profits made by the group (i.e. all of P’s historical profits + profits made by S post-acquisition).The consolidated income statement follows these basic principles:•From revenue to profit after tax include all of P’s income and expenses plus all of S’s income and expenses (reflecting control of S).•After profit after tax deduct share of profits due to the non-controlling interest (to reflect ownership).•c onsolidation schedule (see below)•g roup structure diagram•n et assets of subsidiary at acquisition (required for GW)•goodwill calculation (required where an impairment is to be charged to profits (operating expense))•non-controlling interest(NCI% × subsidiary’s profit after tax (taken from S’s column of consolidation schedule)).W1)Consolidation schedule•100% of P's income and expenses•100% of S's income and expenses (unless a mid-year acquisition).P S Adj TotalRevenue X X (X) XCost of sales (X) (X) X (X)Operating expenses (X) (X) (X) (X)Finance cost (X) (X) (X)Income taxes (X) (X) (X)Profit after tax X XSales and purchases•Consolidated sales revenue = P’s revenue + S’s revenue – intra-group sales. •Consolidated cost of sales = P’s COS + S’s COS – intra-group sales.The deduction of the intra-group sales in both cases should be shown in the adjustments column of the consolidation schedule.Inventory If any goods sold intra-group are included in closing inventory, their value must be adjusted to the lower of cost and net realisable value (NRV) to the group (as in the CSFP).The adjustment for unrealised profit should be shown as an increase to cost of sales in the seller’s column in the consolidation schedule.Definition of an associateIAS 28:An entity over which the investor has significant influence and that is neither a subsidiary nor an interest in joint venture./ Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.Principles of equity accounting and reasoning:Equity accounting is a method of accounting that brings an associate investment into the parent company’s financial statements initially at cost. /The carrying amount of the investment is then adjusted in each period by the group share of the profit of the associate less any impairment losses./The investment in the associate is therefore stated at:•cost plus•group share of retained post-acquisition profits; less•amounts written off (i.e. impairment losses)./The effect of this is that the consolidated statement of financial position includes:•100% of the assets and liabilities of the parent and subsidiary company on a line by line basis•an ‘investments in associates’ line within non-current assets which includes the group share of the assets and liabilities of any associate./The consolidated income statement includes:•100% of the income and expenses of the parent and subsidiary company on a line by line basis•one line ‘share of profit of associates’ which includes the group share of any associate’s profit after tax./Note that in order to equity account, the parent company must already be producing consolidated financial statements (i.e. it must already have at least one subsidiary).Importance of DEPS:•it shows what the current year’s EPS would be if all the dilutive potential ordinary shares in issue had been converted•it can be used to assess trends in past performance •in theory, it serves as a warning to equity shareholders that the return on their investment may fall in future periods.Limitations of EPS:Although EPS is believed to have a real influence on the market price of shares, it has several important limitations as a performance measure:•It does not take account of inflation. Apparent growth in earnings may not be real.•It is based on historic information and therefore it does not necessarily have predictive value.•An entity’s earnings are affected by the choice of its accounting policies. Therefore it may not always be appropriate to compare the EPS of different companies.•DEPS is only an additional measure of past performance despite looking at future potential shares.The elements of financial statements•Assets- an asset is defined as a ‘resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.’•Liabilities- a liability is defined as a ‘present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits’.•Equity- the residual interest in the assets of the entity after deducting all of its liabilities. •Income– is increases in economic benefit during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.•Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions in assets or incurrence’s of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.Definition of revenue:Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an enterprise when those inflows result in increases in equity, other than increases relating to contributions from equity participants./Measurement: Revenue should be measured at the fair value of the consideration received or receivable.1Fair value:Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.2Deferred revenue:If revenue is deferred it should be measured at present value.3Barter transaction:In a barter transaction the revenue should be the fair value of the goods received, and only if unreliable, the fair value of the goods given up.///Revenue is recognised for the sale of goods when a number of criteria are met.a)the enterprise has transferred to the buyer the significant risks and rewards of ownership of the goods;b)the enterprise retains neither continuing managerial involvement to the degree normal associated with ownership nor effective control over the goods sold;c)the amount of revenue can be measured reliably;d)it is probable that the economic benefits associated with the transaction will flow to the enterprise; and e)the costs incurred or to be incurred in respect of the transaction can be measured reliably.。
财产证明FinancialStatement
财产证明FinancialStatement第一篇：财产证明Financial StatementTranslation:Financial StatementPASSPORT NO.:VAF NO.:APPLICANT NAME:Section I About the fees in Southampton(i)The cost of my course and living expenses per annum listTuition Fee(for academic year 2007-2008):£10,500The Cost of Living(including accommodation): £9,000Total Expenses for the duration of my course: £19,50019,500GPB x 15.60 = 304,200.—RMB(ii)The time deposit record in Bank of Communication listed as below:2006/11/06USD 6393.182007/01/29CNY 20,0002007/01/29CNY 20,0002007/01/30CNY 50,0002007/02/01CNY 120,0002007/02/02CNY 50,000This money was transferred into Bank of Communication from China Bank, Bank of Constructions and other banks during the end of 2006 and early this year.They are the savings of my parents from wages and rental.Section II About my sponsors My parents’ situation can be seen on their working and income certificate.There are some extra supporting documents that can be provided:IThe Real Estate Certificate of the house for accommodationI live in this apartment alone in this summer vocation while my parents live in another apartment which belongs to mygrandparents.So after I leave for Britain, this mentioned apartment will be rented at price of more than RMB 5,000 per month.IIThe Real Estate Certificate of the house in renting now My father bought these two stores in 2002 and now they are rented at a price of RMB4,200 per month totally.第二篇：财产证明财产证明财产证明一、存款证明相关问题（一）存款证明的用途1、自费留学且没有奖学金申请者需向学校证明其有经济能力支付学费、生活费。
企业名下法人贷款流程
企业名下法人贷款流程英文回答：The process of applying for a corporate loan as a legal representative of a company can be quite intricate. It involves several steps and requires the submission of various documents and information. Here is a breakdown of the typical process:1. Research and Planning:Before applying for a loan, it is essential to conduct thorough research on different lenders and their loan products. This includes comparing interest rates, repayment terms, and eligibility criteria. Once you have identified a suitable lender, it is important to plan how much funding you require and how it will be utilized.2. Gather Documentation:To support your loan application, you will need to gather and organize relevant documentation. This typically includes financial statements, tax returns, bank statements, business plans, and legal documents such as the company's articles of incorporation and the legal representative's identification.3. Preparing the Loan Application:The next step is to complete the loan application form provided by the lender. This form will require you to provide detailed information about your company, its financial history, and your personal financial situation.It is crucial to ensure that all information provided is accurate and up-to-date.4. Submitting the Application:Once the loan application is completed, it needs to be submitted to the lender along with the required documentation. It is advisable to make copies of all documents for your own records. Some lenders may alsorequire additional information or may request a meeting to discuss the loan application in detail.5. Evaluation and Underwriting:After receiving the loan application, the lender will evaluate the provided information and conduct a thorough underwriting process. This involves assessing the creditworthiness of the company and its legal representative. The lender will review the financial statements, credit history, and other relevant factors to determine the risk associated with granting the loan.6. Loan Approval and Terms:If the lender approves the loan application, they will issue a loan approval letter outlining the terms and conditions of the loan. This will include the loan amount, interest rate, repayment schedule, and any additional requirements or restrictions. It is crucial to carefully review and understand these terms before accepting the loan offer.7. Loan Disbursement:Once the loan offer is accepted, the lender will disburse the funds to the company's designated bank account. The legal representative will need to ensure that the funds are used for the intended purpose and in accordance withthe agreed-upon terms.8. Repayment:The final step in the process is the repayment of the loan. The legal representative is responsible for making regular loan repayments as per the agreed schedule. Failure to make timely repayments may result in penalties,additional fees, or even legal consequences.中文回答：作为一家企业的法人代表申请贷款的流程可能相当复杂。
Applying Financial Statement Analysis
International 11.6%
Biscuit and bakery 19.7% North America 68.7%
Source: Annual Report
Case: Campbell Soup Co.
Preliminary Financial Analysis
Case: Campbell Soup Co.
Preliminary Financial Analysis
Exhibit CC.1 CAMPBELL SOUP COMPANY Sales Contribution and Percent of Sales by Division ($ mil.) Year 11 Year 10 Year 9 Year 8 Sales Contribution: Campbell North America: Campbell U.S.A Campbell Canada $ 3,911.8 352.0 $ 4,263.8 Campbell Biscuit and Bakery: Pepperidge Farm International Biscuit $ $ Campbell International Interdivision Total sales Percent of Sales: Campbell North America: Campbell U.S.A. Campbell Canada Campbell Biscuit and Bakery: Pepperidge Farm International Biscuit 569.0 219.4 788.4 $ 3,932.7 384.0 $ 4,316.7 $ $ 582.0 195.3 777.3 $ 3,666.9 313.4 $ 3,980.3 $ $ 548.4 178.0 726.4 $ 3,094.1 313.1 $ 3,407.2 $ 495.0 — $ 495.0 $ 1,036.5 (69.8) $ 4,868.9 Year 7 $ 2,881.4 312.8 $ 3,194.2 $ $ $ 458.5 — 458.5 Year 6 $ 2,910.1 255.1 $ 3,165.2 $ $ $ 420.1 — 420.1
separate financial statements会计 -回复
separate financial statements会计-回复Separate financial statements是一种会计报告形式，它对一个独立的实体的财务状况和业绩进行了分析和披露。
在本文中，我们将逐步回答关于separate financial statements的重要问题，并讨论其在财务分析中的作用和意义。
第一部分：什么是separate financial statements？首先，我们需要了解separate financial statements的定义。
separate financial statements是指一个独立实体的资产、负债、所有者权益、收入和费用的财务报表。
通常情况下，独立实体指的是一家公司、一个分公司或其他独立经济实体。
separate financial statements通常包括资产负债表、利润表、现金流量表和所有者权益变动表。
这些报表可以提供有关企业财务状况、经营绩效和现金流的全面信息。
第二部分：separate financial statements与consolidated financial statements的区别是什么？与separate financial statements相对的是consolidated financial statements，后者是指将子公司或附属公司与母公司合并在一起的财务报表。
consolidated financial statements提供了整个企业集团的全面财务信息，包括母公司和子公司的财务状况和经营绩效。
区分separate financial statements和consolidated financial statements的关键在于控制权。
当一个公司能够控制另一个公司的决策和经营活动时，它将其纳入consolidated financial statements中。
相反，如果一个公司没有控制另一个公司，它将只发布separate financial statements。
separate financial statements会计 -回复
separate financial statements会计-回复什么是"separate financial statements会计"？"Separate financial statements会计"是一种会计制度，用于记录和报告单个实体（企业、组织或个人）的财务信息。
它强调实体的独立性，将其财务状况、经营业绩和现金流量与其他实体分开进行分析和报告。
这种会计制度适用于独立实体，其财务状况和经营情况与其他实体无关。
分析和编制"separate financial statements"的步骤如下：1. 选择合适的会计原则：会计原则是制定财务报表的基础。
根据国际财务报告准则（IFRS）或国家会计准则（如美国通用会计准则）等，选择适合实体的会计原则。
2. 记录日常交易：使用会计方程式（资产=负债+所有者权益）记录实体的日常交易。
这包括购买和销售商品、支付和收取款项等。
3. 编制资产负债表：通过对资产、负债和所有者权益进行比较，编制资产负债表。
资产包括现金、应收账款、库存等，负债包括应付账款、贷款等。
4. 编制利润表：利润表显示实体在特定期间内的收入、成本和净利润。
通过将销售收入减去成本和费用，计算净利润。
5. 编制现金流量表：现金流量表显示实体在特定期间内的现金流入和现金流出。
将现金流量划分为经营、投资和筹资活动，以了解实体的现金流动情况。
6. 编制股东权益变动表：股东权益变动表记录实体股东权益的变动，包括股东投资、利润分配和其他权益调整等。
7. 进行财务分析：使用各种财务比率和指标，对实体的财务状况和盈利能力进行分析。
这包括流动比率、偿债能力比率和盈利能力比率等。
8. 公开披露：根据法律和规定的要求，将编制好的财务报表进行公开披露，使有关利益相关者和投资者能够了解实体的财务状况和经营情况。
在编制"separate financial statements"时，需要注意以下事项：1. 会计准则的选择与适用：根据实体的特点和所在国家的法律要求，选择适合的会计准则，如IFRS或美国通用会计准则。
8The consolidated statement of financial position
The consolidated statement of financial position1. IFRS10 summary of consolidation procedureIFRS10 lays out the basic procedures for preparing consolidated financial statements1.1 Basic procedureThe following steps are then taken, in order that the consolidated financial statements should show financial information about the group as if it was a single entity1) The carrying amount of the parent’s investment in eachsubsidiary and the parent’s portion of equity of each subsidiary are eliminated or cancelled.2) Non-controlling interests in the net income of consolidatedsubsidiaries are adjusted against group income, to arrive at the net income attributable to the owners of the parent3) Non-controlling interests in the net assets of consolidatedsubsidiaries should be presented separately in the consolidated statement of financial positionOther matters to be dealt with include the following1) Goodwill on consolidation should be dealt with according toIFRS32) Dividends paid by a subsidiary must be accounted forIFRS10 states that all intra group balances and transactions, andthe resulting unrealized profits, should be eliminated in full. Unrealized losses resulting from intra group transactions should also be eliminated.1.2 Cancellation and part cancellationItems requiring cancellation may include the following.1) The asset “shares in subsidiary companies” which appears inthe parent company’s accounts will be matched with the liability “share capital”in the subsidiaries accounts2) There may be intra-group trading within the group. Forexample ,S Co may sell goods on credit to P Co would then be a receivable in the accounts of S Co, while S Co would be a payable in the accounts of P Co.1.3 Example : cancellationP Co regularly sells goods to its one subsidiary company , S Co, which it has owned since S Co’s incorporation. The statement of financial position of the two companies on 31 December 20*6 are given belowSTATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER20*6P Co S C0$ $AssetsNon-current assetsproperty, plant and equipment 35,000 45,000 Investment in 40,000 $1 shares in S Co at40,000cost75,000Current assetsInventories 16,000 12,000 Receivables: S Co 2,000other 6,000 9,000 Cash at bank 1,000Total assets 100,000 66,000 Equity and liabilitiesEquity40,000 $1 ordinary shares 40,000 70,000 $1 ordinary shares 70,000Retained earnings 16,000 19,00086,000 59,000 Current liabilitiesBank overdraft 3,000 Payables: P Co 2,000 Payables:other 14,000 2,000 Total equity and liabilities 100,000 66,000RequiredPrepare the consolidated statement of financial position of P Co at 31 December 20*6SolutionThe cancelling items are:1)P Co’s asset‘investment in shares of S Co’($40,000) cancelswith S Co’s liability‘share capital’($40,000)2) P Co’s asset‘receivables: S Co’($2,000) cancels with S Co’s liability‘payables:P Co’($2,000)The remaining assets and liabilities are added together to produce the following consolidated statement of financial positionP CoCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 20*6$ $AssetsNon-current assetsproperty,plant and equipment 80,000Current assetsInventories 28,000Receivables 15,000Cash at bank 1,00044,000Total assets 124,000Equity and liabilitiesEquity70,000 $1 ordinary shares 70,000Retained earnings 35,000105,000Current liabilitiesBank overdraft 3,000Payables 16,00019,000Total equity and liabilities 124,000Note the following1) P Co’s bank balance is not netted off with S Co’s bankoverdraft. To offset one against the other would be lessinformative and would conflict with the principle that assets and liabilities should not be netted off.2) The share capital in the consolidated statement of financialposition is the share capital of the parent company alone. This must always be the case, no matter how complex the consolidation, because the share capital of subsidiary companies must always be a wholly cancelling item.1.4 part cancellationAn item may appear in the statements of financial position of a parent company and its subsidiary, but not at the same amounts 1) The parent company may have acquired shares in thesubsidiary at a price greater or less than their par value. This raises the issue of goodwill.2) Even if the parent company acquired shares at par value, it maynot have acquired all the shares of the subsidiary( so the subsidiary may be only partly owned).This raises the issue of non-controlling interest.3) The inter-company trading balances may be out of step becauseof goods or cash in transit.4) One company may have issued loan stock of which a proportiononly is taken up by the other company.The remaining uncancelled amounts will appear in the consolidatedstatement of financial position.1) Uncancelled loan stock will appear as a liability of the group2) Uncancelled balances on intra-group accounts represent goodsor cash in transit, which will appear in the consolidated statement of financial position.QuestionThe statements of financial position of P Co and of its subsidiary S Co have been made up to 30 June. P Co has owned all the ordinary shares and 40% of the loan stock of S Co since its incorporation.STATEMENT OF FINANCIAL POSITION AS AT 30 JUNEP Co S C0$ $AssetsNon-current assetsproperty,plant and equipment 120,000 100,000 Investment in S Co at cost80000 ordinary shares of $1 each 80,00020000 of 12% loan stock in S Co 20,000220,000Current assetsInventories 50,000 60,000 Receivables 40,000 30,000Current account with S Co 18,000Cash 4,000 6,000112,000 96,000Total assets 332,000 196,000Equity and liabilitiesEquityordinary shares of $1 each,fully paid 100,000 80,000Retained earnings 95,000 28,000195,000 108,000Non-current liabilities10%loan stock 75,00012%loan stock 50,000Current liabilitiesPayables 47,000 16,000Taxation 15,000 10,000Current account with P Co 12,00062,000 38,000Total equity and liabilities 332,000 196,000The difference on current account arises because of goods in transitRequiredPrepare the consolidated statement of financial position of P CoP CoCONSOLIDATED STATEMENT OF FINANCIAL AS AT 30 JUNE$ $AssetsNon-current assetsproperty,plant and equipment(120000+100000) 220,000 Current assetsInventories(50000+60000) 110,000Goods in transit(18000-12000) 6,000Receivables(40000+30000) 70,000Cash (4000+6000) 10,000196,000 Total assets 416,000 Equity and liabilitiesEquityordinary shares of $1 each,fully paid (Parent) 100,000Retained earnings(95000+28000) 123,000223,000 Non-current liabilities10%loan stock 75,00012%loan stock(50000*60%) 30,000105,000 Current liabilitiesPayables(47000+16000) 63,000Taxation(15000+10000) 25,00088,000Total equity and liabilities 416,000 Note especially how:1) The uncancelled loan stock in S Co becomes a liability of thegroup2) The goods in transit is the difference between the currentaccounts(18000-12000)3) The investment in S Co’s shares is cancelled against S Co’s share capital2 Non-controlling interestsIn the consolidated statement of financial position it is necessary to distinguish non-controlling interests from those net assets attributable to the group and financed by shareholders’equity.2.1 IntroductionNon-controlling interest can be valued at:a) Its proportionate share of the fair value of the subsidiary’snet assetsb) Full( or fair) value(usually based on the market value of theshares held by the non-controlling interest)2.2 Example: non-controlling interestP Co has owned 75% of the share capital of S Co since the date ofS Co’s incorporation. Their latest statements of financial positionare given below.STATEMENT OF FINANCIAL POSITIONP Co S C0$ $AssetsNon-current assetsproperty, plant and equipment 50,000 35,00030000 $1 ordinary shares in S Co at30,000cost80,000Current assets 45,000 35,000Total assets 125,000 70,000Equity and liabilitiesEquity$1 ordinary shares 80,000 40,000Retained earnings 25,000 10,000105,000 50,000Current liabilities 20,000 20,000Total equity and liabilities 125,000 70,000 RequiredPrepare the consolidated statement of financial position.SolutionAll of S Co’s net assets are consolidated despite the fact that the company is only 75% owned. The amount of net assets attributable to non-controlling interests is calculated as follows.$Non-controlling share of share capital (25%*40000) 10000 Non-controlling share of retained earnings (25%*10000) 250012500Of S Co’s share capital of $40000,$10000 is included in the figure for non-controlling interest, while $30000 is cancelled with P Co’sasset “investment in S Co”The consolidated statement of financial position can now be prepared.P GROUPCONSOLIDATED STATEMENT OF FINANCIAL POSITION$ $Assetsproperty,plant and equipment 85,000 Current assets 80,000 Total assets 165,000 Equity and liabilitiesEquity attributable to owners of the parentShare capital 80,000Retained earnings $(25000+75%*10000) 32,500112,500 Non-controlling interest 12,500125,000 Current liabilities 40,000 Total equity and liabilities 165,0002.3 Procedurea) Aggregate the assets and liabilities in the statement of financial position ie 100% P +100%S irrespective of how much P actually owns.This shows the amount of net assets controlled by the group.b) Share capital is that of the parent onlyc) Balance of subsidiary’s reserves are consolidated( after cancelling any intra-group items)d) Calculate the non-controlling interest share of the subsidiary’s net assets( share capital plus reserves)3 Dividends paid by a subsidiaryWhen a subsidiary company pays a dividend during the year the accounting treatment is not difficult. Suppose S Co, a 60% subsidiary of P Co, pays a dividend of $1000 on the last day of its accounting period. It total reserves before paying the dividend stood at $5000.a) $400 of the dividend is paid to non-controlling shareholders.The cash leaves the group and will not appear anywhere in the consolidated statement of financial position.b) The parent company receives $600 of the dividend, debitingcash and crediting profit or loss. This will be cancelled on consolidation.c) The remaining balance of retained earnings in S Co’statement of financial position($4000)will be consolidated in the normal way. The group’s share (60%*$4000=2400) will be included in the group retained earnings in the statement of financial position; the non-controlling interest share (40%*$4000=1600) is credited to the non-controlling interest account in the statement of financial position.4 Goodwill arising on consolidationGoodwill is the excess of the amount transferred plus the amount of non-controlling interests over the fair value of the net assets of thesubsidiary.4.1 Goodwill and pre-acquisition profitsUp to now we have assumed that S Co had nil retained earnings when its shares were purchased by P Co. Assuming instead that S Co had earned profits of $8000 in the period before acquisition, its statement of financial position just before the purchase would look at follows.$Total assets 48000 Share capital 40000 Retained earnings 8000The consequence of this is that any pre-acquisition retained earnings of a subsidiary company are not aggregated with the parent company’s retained earnings in the consolidated statement of financial position. The figure of consolidated retained earnings comprises the retained earnings of the parent company plus the post-acquisition retained earnings only of subsidiary companies. 4.2 Example: goodwill and pre-acquisition profitsSing Co acquired the ordinary shares of Wing Co on 31 March when the draft statements of financial position of each company were as follows.STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH$AssetsNon-current assetsInvestment in 50000 shares of Wing Co at cost 80,000Current assets 40,000Total assets 120,000Equity and liabilitiesEquityordinary shares 75,000Retained earnings 45,000Total equity and liabilities 120,000WING COSTATEMENT OF FINANCIAL POSITION AS AT 31 MARCH$Current assets 60,000Equity50000 ordinary shares of $1 each 50,000Retained earnings 10,00060,000SolutionThe technique to adopt here is to produce a new working: Goodwill.A proforma working is set out below.GoodwillApplying this to our example the working will look like this$ $ Consideration transferred 80,000 net assets acquired as represented by:Ordinary share capital 50,000Retained earnings on acquisition 10,000(60,000) Goodwill 20,000CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH$AssetsNon-current assetsGoodwill arising on consolidation( W) 20,000 Current assets( 40000+60000) 100,000 Total assets 120,000 Equity and liabilitiesordinary shares 75,000 Retained earnings 45,000 Total equity and liabilities 120,0004.3 Goodwill and non-controlling interestNow let us look at what would happen if Sing Co had obtained less than 100% of the shares of Wing Co. If Sing Co had paid $70000 for 40000 shares in Wing Co, the goodwill working would be as follows:$ Consideration transferred 70,000Non-controlling interest (60000*20%) 12000Net assets acquired(60000) Goodwill 220004.4 Non-controlling interest at fair valueIFRS 3 revised suggests that the closest approximation to fair value will be the market price of the shares held by non-controllingshareholders just before acquisition by the parent.Continuing our example above, we will assume that the market price of the shares was $1.25.The goodwill calculation will then be as follows:$Consideration transferred 70000Fair value of NCI(10000*$1.25) 12500Net assets at acquisition (60000)Goodwill 22500Goodwill (total $22500) is $500 higher than goodwill calculated measuring non-controlling interest at its share of the net assets of the subsidiary. This $500 represents the goodwill attributable to the non-controlling interest.4.5 Non-controlling interest at year endWhere the option is used to value non-controlling interest at fair value, the goodwill attributable to the NCI will also be added to the NCI at the year end. The most straightforward way to calculate this is to start with the fair value of the NCI at acquisition and add the NCI share of post-acquisition retained earnings.ExampleP acquired 75% of the shares in S on 1 January 2007 when S had retained earnings of $15,000.The market price of S’s shares justbefore the date of acquisition was $1.6.P values non-controlling interest at fair value .Goodwill is not impaired.The statements of financial position of P and S at 31 December 20*7 were as follows:P S$ $Property plant and equipment 60,000 50,000Shares in S 68,000128,000 50,000Current assets 52,000 35,000180,000 85,000Share capital-$1 shares 100,000 50,000Retained earnings 70,000 25,000170,000 75,000Current liabilities 10,000 10,000180,000 85,000Prepare the consolidated statement of financial position of the P GroupSolutionCONSOLIDATED STATEMENT OF FINANCIAL POSITION$AssetsProperty plant and equipment(60000+50000) 110,000Goodwill (W1) 23,000Current assets (52000+35000) 87,000Total assets 220,000Equity and liabilitiesEquity attributable to the owners of PShare capital 100,000Retained earnings (W2) 77,500177,500Non-controlling interest (W3) 22,500Total equity 200,000Current liabilities (10000+10000) 20,000220,000Workings1 GoodwillGroup$ Consideration transferred 68000Fair value of NCI (12500*$1.60) 20000Net assets of S at acquisition ( 50000+15000) (65000) Goodwill 230002 Retained earningsP S$ $ Per statement of financial position 70000 25000 Less pre-acquisition (15000)10000 Group share of S (10000*75%) 7500Group retained earnings 775003 Non-controlling interest at year end$ NCI at acquisition 20000 Share of post-acquisition retained earnings (10000*25%) 250022500If non-controlling interest was valued at share of net assets, goodwill and non-controlling interests in the example above would be as follows:W1 Goodwill$ Considered transferred 68000 Non-controlling interest ( (50000+15000)*25%) 16250 Net assets of S at acquisition (50000+15000) (65000)19250 W3 Non-controlling interest at year end$NCI at acquisition 16250 Share of post-acquisition retained earnings 250018750 4.6 Impairment of goodwillGoodwill arising on consolidation is subjected to an annual impairment review and impairment may be expressed as an amount or as a percentage. The double entry to write off the impairment is:DEDIT Group retained earningsCREDIT GoodwillHowever, when non-controlling interest is valued at fair value thegoodwill in the statement of financial position includes goodwill attributable to the non-controlling interest. In this case the double entry will reflect the non-controlling interest proportion based on their shareholding as follows:DEBIT Group retained earningsDEBIT Non-controlling interestCREDIT GoodwillIn our solution above in 4.8 the non-controlling interest holds 25%.If the total goodwill of $23000 was impaired by 20% the double entry for this would be:DEBIT Retained earnings 3450DEBIT Non-controlling interest 1150CREDIT Goodwill 4600Non-controlling interest at the year end would then be$213504.7 Gain on a bargain purchaseGoodwill arising on consolidation is the difference between the cost of an acquisition and the value of the subsidiary’s net assets acquired. This difference can be negative: the aggregate of the fair values of the separable net assets acquired may exceed what the parent company paid for them. This is often referred to as negative goodwill. In this situation:a) An entity should first re-assess the amounts at which it hasmeasured both the cost of the combination and the acquiree’s identifiable net assets. This exercise should identify any errors.b) Any excess remaining should be recognized immediately inprofit or loss4.8 Forms of considerationThe consideration paid by the parent for the shares in the subsidiary can take different forms and this will affect the calculation of goodwill.●Contingent considerationThe parent acquired 60% of the subsidiary’s $100m share capital on 1 Jan 20*6 for a cash payment of $150m and a future payment of $50m on 31 March 20*7 if the subsidiary’s post acquisition profits have exceeded an agreed figure by that date.In the financial statements for the year to 31 December 20*6 $50m will be added to the cost of the combination, discounted as appropriate.IFRS3 requires the acquisition-date fair value of contingent consideration to be recognized as part of consideration for the acquiree.●Deferred considerationAn agreement may be made that part of the consideration for thecombination will be paid at a future date. This consideration will therefore be discounted to its present value using the acquiring entity’s cost of capital.ExampleThe parent acquired 75% of the subsidiary’s 80m $1 shares on 1 January 20*6.It paid $3.5 per share and agreed to pay a future $108m on 1 January 20*7.The parent company’s cost of capital is 8%.In the financial statements for the year to 31 December 20*6 the cost of the combination will be as follows:$m80m shares*75%*$3.50 210 Deferred consideration:$108m*1/1.08 100Total consideration 310At 31 December 20*6 $8m will be charged to finance costs, being the unwinding of the discount on the deferred consideration. The deferred consideration was discounted by $8m to allow for the time value of money. At 1 January 20*7 the full amount becomes payable.●Share exchangeThe parent has acquired 12000 $1 shares in the subsidiary byissuing 5 of its own $1 shares for every 4 shares in the subsidiary. The market value of the parent company’s shares is $6.Cost of the combination:$12000*5/4*$6 90000Note that this is credited to the share capital and share premium of the parent company as follows:DR CR Investment in subsidiary 90000Share capital($12000*5/4) 15000Share premium($12000*5/4*5) 750005 Non-controlling interest at fair valueThe draft statements of financial position of Ping Co and Pong Co on 30 June 20*8 were as follows.STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 20*8PING CO PONG CO$ $AssetsNon-current assetsproperty,plant and equipment 50,000 40,000 20000 ordinary shares in PONG Co at cost 30,00080,000Current assetsInventories 3,000 8,000 Owed by Ping Co 10,000 Receivables 16,000 7,000 Cash 2,00021,000 25,000 Total assets 101,000 65,000 Equity and liabilitiesEquityordinary shares of $1 each 45,000 25,000 Revaluation surplus 12,000 5,000 Retained earnings 26,000 28,00083,000 58,000 Current liabilitiesOwed to Pong Co 8,000Trade payables 10,000 7,00018,000 7,000 Total equity and liabilities 101,000 65,000Ping Co acquired its investment in Pong Co on 1 July 20*7 when the retained earnings of Pong Co stood at $6000.The agreed consideration was $30000 cash and a further $10000 on1 July 20*9.Ping Co’s cost of capital is 7%.Pong Co has aninternally –developed brand name-“Pongo”-which was valued at $5000 at the date of acquisition. There have been no changes in the share capital or revaluation surplus of Pong Co since that date. At 30 June 20*8 Pong Co had invoiced Ping Co for goods to the value of $2000 and Ping Co had sent payment in full butthis had not been received by Pong Co.There is no impairment of goodwill. It is group policy to value non-controlling interest at full fair value.At the acquisition date the non-controlling interest was valued at $9000.Prepare the consolidated statement of financial position of Ping Co as at 30 June 20*8.Working1) Calculate goodwillGroup$ Consideration transferred (W2) 38734Fair value of NCI 9000Net assets acquired as represented by:Ordinary share capital 25000Revaluation surplus on acquisition 5000Retained earnings on acquisition 60002) Consideration transferred$Cash paid 30,000Fair value of deferred consideration38734 Note that the deferred consideration has been discounted at 7% for two years (1 July 20*7 to 1 July 20*9).However, at the date of the current financial statement,30 June 20*8,the discount for one year has unwound. The amount of the discount unwound is$ (10000*1/1.07)-8734 612So this amount will be charged to finance costs in the consolidated financial statements and the deferred consideration under liabilities will be shown as $9346( 8734+612)3) Calculate consolidated reserves.Consolidated revaluation surplus$Ping Co 12000Share of Pong Co’s post acquisition revaluation surplus -Consolidated retained earningsPing Pong$ $Retained earnings per question 26000 28000Less pre-acquisition (6000)429884) Calculate non-controlling interest at year end$Fair value of non-controlling interest 9000Share of post –acquisition retained earnings134005) Agree current accountsPong Co has cash in transit of $2000 which should be added to cash and deducted from the amount owed by Ping Co.Cancel common items: these are the current accounts between the two companies of $8000 each.6) Prepare the consolidated statement of financial position.PING COCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 20*8$ $AssetsNon-current assetsproperty,plant and equipment (50000+40000) 90,000 Intangible assets: Goodwill(W1) 6,734Brand name (W1) 5,000 Current assetsInventories(3000+8000)Receivables( 16000+7000)Cash (2000+2000)Total assetsEquity and liabilitiesEquityordinary shares of $1 each 45,000Revaluation surplus(W3) 12,000Retained earnings(W3) 42,98899,988 Non-controlling interest(W4) 13,400113,388 Current liabilitiesTrade payables(10000+7000)Deferred consideration (W2)Total equity and liabilities6 Intra-group trading●Unrealized profitThe objective of consolidated accounts is to present the financial position of several connected companies as that of a single entity, the group. This means that in a consolidated statement of financial position the only profits recognized should be those earned by the group in providing goods or services to outsiders.Suppose that a parent company P Co buys goods for $1600 and sells them to a wholly owned subsidiary S Co for $2000.The goods are in S Co’s inventory at the year end and appear in S Co’s statement of financial position at $2000.In this case, P Co will record a profit of $400 in its individual accounts ,but from the group’s point of view the figures are:Cost $1600External sales nilClosing inventory at cost $1600Profit/loss nilIf we add together the figures for retained earnings and inventory in the individual statements of financial position of P Co and S Co the resulting figures for consolidated retained earnings and consolidated inventory will each be overstated by $400.A consolidation adjustment is therefore necessary as followsDEBIT Group retained earningsCREDIT Group inventory( statement of financial position)●Non-controlling interests in unrealized intra-group profitsA further problem occurs where a subsidiary company which is not wholly owned is involved in intra-group trading within the group. If a subsidiary S Co is 75% owned and sells goods to the parent company for $16000 cost plus $4000 profit, ie for $20000 and ifthese items are unsold by P Co at the end of the reporting period, The‘unrealised’profit of $4000 earned by S Co and charged to P Co will be partly owned by the non-controlling interest of S Co. The correct treatment of these intra-group profits is to remove the whole profit, charging the non-controlling interest with their proportion.DEBIT group retained earningsDEBIT non-controlling interestCREDIT group inventory( statement of financial position) Example: non-controlling interests and intra-group profitsP Co has owned 75% of the shares of S Co since the incorporation of that company. During the year to 31 December 20*2,S Co sold goods costing $16000 to P Co at a price of $20000 and these goods were still unsold by P Co at the end of the year. Draft statements of financial position of each company at 31 December 20*2 were as follows.P CO S CO$ $AssetsNon-current assetsproperty,plant and equipment 125,000 120,000 Investment:75,000 shares in S Co at cost 75,000200,000 120,000 Current assetsInventories 50,000 48,000 Receivables 20,000 16,00070,000 64,000 Total assets 270,000 184,000 Equity and liabilitiesEquityordinary shares of $1 each fully paid 80,000 100,000 Retained earnings 150,000 60,000230,000 160,000 Current liabilities 40,000 24,000 Total equity and liabilities 270,000 184,000RequiredPrepare the consolidated statement of financial position of P Co at 31 December 20*2.The fair value of the non-controlling interest at acquisition was $25000.SolutionThe profit earned by S Co but unrealized by the group is $4000 of which $3000(75%) is attributable to the group and $1000(25%) to the non-controlling interest.P Co S Co$ $Retained earningsPer question 150000 60000Less unrealized profit (4000)。
Unit 5 Financial Statements
The Objective of Financial Statements
Financial statements are the main source of financial information to persons outside the business organization and also are useful to management. The basic purpose of financial statements is to assist decision makers in evaluating the financial strength, profitability, and future prospects of a business. 财务报表是企业外部人员获取企业财务信息的主要来源，同时它 也服务于企业的管理当局。编制财务报表的根本目的是帮助决策者 对公司的经济实力、盈利状况和未来发形前景进行评估。
因此，从公司的经理人员、投资者、债权人、主要客户到公司 的员工都与财务报表有直接的关系。财务报表一般 都非常简明，用 三到四页的篇幅便将企业在一定时期（如一个月或一年）的经济活 动概括呈现出来。财务报表反映了企业在一个会计期间经营成果以 及在此会计期末的财务状况。
Financial statements prepared for this purpose meet the common needs of most users. However, financial statements do not provide all the information that users may need to make economic decisions since they largely portray the financial effects of past events and do not necessarily provide non-financial information.
合并财务报告英语翻译
合并财务报告英语翻译Merging Financial ReportsMerging financial reports refers to the process of combining the financial information from two or more entities into a single report. This is often done when a company acquires another company and wants to integrate their financial information, or when multiple entities within a corporation want to consolidate their financials.The purpose of merging financial reports is to provide a comprehensive view of the financial performance and position of the combined entity. This allows stakeholders, such as investors, creditors, and regulators, to analyze and evaluate the financial health of the organization as a whole.The process of merging financial reports involves several steps. The first step is to gather the financial statements of the entities involved, including the balance sheet, income statement, and cash flow statement. These financial statements should be prepared in accordance with the applicable accounting standards, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).Once the financial statements are collected, they need to be reviewed for consistency and accuracy. Any differences in accounting policies or practices between the entities should be identified and resolved. For example, if one entity uses the straight-line method for depreciation and another entity uses the declining balance method, a decision needs to be made on which method to apply going forward.The next step is to eliminate any intercompany transactions or balances. Intercompany transactions refer to transactions between entities within the same organization. These transactions may include sales, purchases, loans, or transfers of assets or liabilities. To eliminate these transactions, the amounts need to be offset against each other, resulting in a consolidated figure.Once the intercompany transactions are eliminated, the financial statements can be consolidated. This involves combining the individual financial statements into a single set of financial statements that reflect the financial position and performance of the combined entity. The consolidation process includes adding together the assets, liabilities, revenues, expenses, andprofits/losses of the entities involved.After the financial statements have been consolidated, they should be presented in a clear and understandable format. This may involve reformatting the financial statements to ensure consistency and comparability. Key financial ratios and metrics should also be calculated to provide additional insights into the financial performance and position of the combined entity.Finally, the merged financial report should be audited or reviewed by an independent accounting firm. This helps to ensure the accuracy, reliability, and compliance of the financial information. The auditors or reviewers will assess the validity of the financial statements, the appropriateness of the accounting policies applied, and the adequacy of the disclosures made.In conclusion, merging financial reports is a complex process that involves combining the financial information of multiple entities into a single report. This process requires careful analysis, reconciliation, and consolidation of the financial statements. The resulting merged financial report provides a comprehensive view of the financial performance and position of the combined entity, which is useful for stakeholders in making informed decisions.。
ACCA知识点：consolidated financial statements
ACCA知识点：consolidated financial statements本文由高顿ACCA整理发布，转载请注明出处-Relevant to Paper F3Exam tipsRemember that at Paper F3/FFA,despite the current exam format testing MCQ only,a good solid platform of understanding the principles of consolidation is required.Although you are only being asked for extracts and calculations of typically one figure,learning standard consolidation workings can help with your exam approach.Practicing full length consolidation questions will help you grasp a better understanding of consolidation.It is important to understand how each calculation fits into the consolidated financial statement,and this will also benefit your future studies when you revisit consolidation in your later Paper F7 and Paper P2 studies.When answering MCQs,remember to:read the questions requirement carefully and understand what is being asked for think about relevant consolidation workings or extracts that may help youcalculate what you think the correct figure is before you look at MCQ answer options–be careful not to let the distracters catch you out,so think carefully about your calculationre-read the question to ensure you understand it and check you are answering the question set if your initial calculation does not match any of the answer options.更多ACCA资讯请关注高顿ACCA官网：X。
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19.7 (1.1) 100.0%
19.2 (1.3) 100.0%
18.2 (1.2) 100.0%
21.3 (1.4) 100.0%
20.0 (1.3) 100.0%
17.9 (1.5) 100.0%
Case: Campbell Soup Co.
Preliminary Financial Analysis
• Identify the most effective and efficient tools of analysis
• Interpret the evidence
Prelude to Comprehensive Analysis
Building Blocks of Analysis
Analysis emphasizes six areas of inquiry—with varying degrees of importance • Short-term liquidity--Ability to meet short-term obligations. • Capital structure and solvency--Ability to generate future revenues and meet long-term obligations. • Return on invested capital--Ability to provide financial rewards sufficient to attract and retain financing. • Asset turnover--Asset intensity in generating revenues to reach a sufficient profitability level. • Operating performance and profitability--Success at maximizing revenues and minimizing expenses from operating activities over the long run. • Forecasting and valuation – ability to generate sufficient cash flows fund investment needs and create shareholder value.
Steps in Analyzing Financial Statements
• Explicitly define the analysis objectives
• Formulate specific questions and criteria consistent with the analysis objectives
Campbell's Sales by Divisions
International 11.6%
Biscuit and bakery 19.7% North America 68.7%
Source: Annual Report
Case: Campbell Soup Co.
Preliminary Financial Analysis
Applying Financial Statement Analysis
CC
CHAPTER
McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Prelude to Comprehensive Analysis
Case: Campbell Soup Co.
Preliminary Financial Analysis
Exhibit CC.1 CAMPBELL SOUP COMPANY Sales Contribution and Percent of Sales by Division ($ mil.) Year 11 Year 10 Year 9 Year 8 Sales Contribution: Campbell North America: Campbell U.S.A Campbell Canada $ 3,911.8 352.0 $ 4,263.8 Campbell Biscuit and Bakery: Pepperidge Farm International Biscuit $ $ Campbell International Interdivision Total sales Percent of Sales: Campbell North America: Campbell U.S.A. Campbell Canada Campbell Biscuit and Bakery: Pepperidge Farm International Biscuit 569.0 219.4 788.4 $ 3,932.7 384.0 $ 4,316.7 $ $ 582.0 195.3 777.3 $ 3,666.9 313.4 $ 3,980.3 $ $ 548.4 178.0 726.4 $ 3,094.1 313.1 $ 3,407.2 $ 495.0 — $ 495.0 $ 1,036.5 (69.8) $ 4,868.9 Year 7 $ 2,881.4 312.8 $ 3,194.2 $ $ $ 458.5 — 458.5 Year 6 $ 2,910.1 255.1 $ 3,165.2 $ $ $ 420.1 — 420.1
$ 1,222.9 (71.0) $ 6,204.1
$ 1,189.8 (78.0) $ 6,205.8
$ 1,030.3 (64.9) $ 5,672.1
897.8 (60.1) $ 4,490.4
766.2 (64.7) $ 4,286.8
63.0% 5.7 68.7
9.2 3.5 12.7
63.4% 6.2 69.6
Campbell's Operating Cash Flow
11 10
Year
9 8 7 6 0 200 400 600 800 1000
$ Millions
Source: Annual Report
Case: Campbell Soup Co.
Preliminary Financial Analysis
Campbell's Five-Year Growth Rates
Equity Dividends Income Sales 0
Source: Annual Report
2
4
6
8
10
12
14
Percent
Case: Campbell Soup Co.
Cash Flow Analysis and Forecasting
9.4 3.1 12.5
64.7% 5.5 70.2
9.7 3.1 12.8
63.6% 6.4 70.0
10.2 — 10.2
64.2% 6.9 71.1
10.2 — 10.2
67.9% 5.9 73.8
9.8 — 9.8
Campbell International Interdivision Total sales
Prelude to Comprehensive Analysis
Reporting on Financial Statement Analysis
Analysis report typically contains at least six distinct sections:
1.Executive Summary--Brief summary focuses on important analysis results. 2.Analysis overview--Background material on the company, its industry, and its economic environment. 3.Evidential matter--Financial statements and information used in the analysis. This includes ratios, trends, statistics, and all analytical measures assembled. 4.Assumptions--Identification of important assumptions regarding a company’s industry and economic environment, and other important assumptions for estimates or forecasts. 5.Crucial factors--Listing of important favorable and unfavorable factors, both quantitative and qualitative, for company performance—usually listed by areas of analysis. 6. Inferences--Includes forecasts, estimates, interpretations, and conclusions drawing on all four prior sections of the report.
Exhibit CC.2 CAMPBELL SOUP COMPANY Income Statements (millions) Year 11 Year 10 Year 9 Net sales $ 6,204.1 Costs and expenses: Cost of products sold $ 4,095.5 Marketing and selling expenses 956.2 Administrative expenses 306.7 Research and development expenses 56.3 Interest expense 116.2 Interest income (26.0) Foreign exchange losses, net 0.8 Other expense (income) 26.2 Divestitures, restructuring, & unusual charges 0.0 Total costs and expenses $ 5,531.9 Earnings before equity in affil. & M.I. $ 672.2 Equity in earnings of affiliates 2.4 Minority interests (7.2) Earnings before taxes $ 667.4 Taxes on earnings 265.9 Earnings before cumulative effect $ 401.5 Cumulative eft earnings $ 401.5 Earnings per share $ 3.16 Weighted-average shares outstanding 127.00 $ 6,205.8 $ 4,258.2 980.5 290.7 53.7 111.6 (17.6) 3.3 14.7 339.1 $ 6,034.2 $ 171.6 13.5 (5.7) $ 179.4 175.0 $ 4.4 0 $ 4.4 $ 0.03 126.60 $ 5,672.1 $ 4,001.6 818.8 252.1 47.7 94.1 (38.3) 19.3 32.4 343.0 $ 5,570.7 $ 101.4 10.4 (5.3) $ 106.5 93.4 $ 13.1 0 $ 13.1 $ 0.10 129.30